Which Bank’s CDA Is The Best Deal?

Is your baby going to be born soon?

It is good to look around for the best bank to open your baby’s first bank account, Child Development Account (CDA).

As the CDA is going to accompany your child for a long time, it’s worthwhile to spend a little time looking around for the CDA that gives the highest interest rate.

Currently, only POSB, OCBC, and UOB are offering Child Development Accounts (CDA).

All 3 banks offer an interest rate of up to 2% p.a.

POSB CDA

Balances
Interest Rates (% p.a.)
First $10,000
1.00
Next $40,000
2.00
Above $50,000
0.05

OCBC CDA

Balances
Interest Rates (% p.a.)
First $10,000
0.60
Next $10,000
0.80
Above $20,000
2.00

UOB CDA

Balances
Interest Rates (% p.a.)
First $25,000
1.00
Next $25,000
2.00
Above $50,000
0.05

Which Bank’s CDA To Choose?

From the looks of it, it seems like POSB CDA is the best deal!

Anything above $10,000 and below $40,000 yields 2% p.a.

In case you are a rich parent and decides to have more than $50,000 (which is rare) in your child’s CDA, OCBC CDA will be a good choice as anything above $20,000 yields 2% p.a. while POSB and UOB only offer 0.05% p.a. for anything above $50,000.

CDA Benefits From Government

Child Order
First Step Grant
Dollar-for-dollar Matching
Maximum CDA Benefits
1st Child
S$3,000
Up to S$3,000 each
S$6,000 each
2nd Child
S$3,000
Up to S$6,000 each
S$9,000 each
3rd & 4th Child
S$3,000
Up to S$9,000 each
S$12,000 each
5th Child Onwards
S$3,000
Up to S$15,000 each
S$18,000 each

Use Of Child Development Account

You can use the money in your child’s CDA to pay for expenses at the following Baby Bonus Approved Institutions (AIs):

  • Child Care Centres
  • Kindergartens
  • Special education schools
  • Providers of early intervention programmes
  • Providers of assistive technology devices
  • Hospitals and clinics
  • Pharmacies
  • Optical shops

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